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Walker V. Nestle USA, Inc. Et Al

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Walker V. Nestle USA, Inc. Et Al Case 3:19-cv-00723-L-KSC Document 1 Filed 04/19/19 PageID.1 Page 1 of 40 COAST LAW GROUP, LLP 1 HELEN I. ZELDES (220051) 2 [email protected] 3 AMY C. JOHNSGARD (279795) [email protected] 4 BEN TRAVIS (305641) 5 [email protected] 1140 S. Coast Hwy 101 6 Encinitas, CA 92024 7 Tel: (760) 942-8505 8 SCHONBRUN SEPLOW HARRIS REESE LLP 9 & HOFFMAN LLP MICHAEL R. REESE (206773) PAUL L. HOFFMAN (71244) [email protected] 10 [email protected] GEORGE V. GRANADE (316050) 11 CATHERINE SWEETSER (271142) [email protected] [email protected] 8484 Wilshire Blvd. 12 11543 W Olympic Blvd Los Angeles, California 90211 13 Los Angeles, CA 90064 Telephone: (212) 643-0500 Telephone: (310) 396-0731 14 [Additional counsel on signature page.] 15 16 Attorneys for Plaintiff Walker and the Putative Class 17 UNITED STATES DISTRICT COURT 18 SOUTHERN DISTRICT OF CALIFORNIA 19 20 Renee Walker, individually and on behalf Civil Case No.: '19 CV0723 L KSC 21 of all others similarly situated, 22 Plaintiff, CLASS ACTION COMPLAINT 23 vs. DEMAND FOR JURY TRIAL 24 25 Nestlé USA, Inc., a Delaware Corporation; and DOES 1 to 100; 26 27 Defendants. 28 29 1 30 CLASS ACTION COMPLAINT 31 Case 3:19-cv-00723-L-KSC Document 1 Filed 04/19/19 PageID.2 Page 2 of 40 1 TABLE OF CONTENTS 2 Page 3 I. NATURE OF THE CASE......................................... 2 4 II. JURISDICTION AND VENUE .................................... 3 5 III. PARTIES ...................................................... 4 6 IV. FACTUAL ALLEGATIONS ...................................... 4 7 A. Child Labor and Environmental Degradation in Côte D’Ivoire Chocolate Production is Well-Known 8 and Undisputed by Nestlé.................................... 4 9 B. Nevertheless, Nestlé Deceptively Labels Its Chocolate as a Sustainable, Fair Trade Product .............................. 6 10 1. Defendant’s Sustainability Labeling is False and Misleading . .7 11 2. There Are No “Sustainable” Environmental 12 Protocols in Place in Defendant’s Cocoa Supply Chain . .... 8 13 3. Slavery and Forced Child Labor Are Not “Sustainable”....... 9 14 4. Nestlé’s Cocoa Plan is a Sham.......................... 10 15 5. The UTZ Certification Promoted by Nestlé Is a Sham ....... 12 16 6. Child Labor and Trafficked Labor Are So Widespread in Côte D’Ivoire That No Beans Can Be Labeled 17 Slave-Free .......................................... 14 18 a. The Cocoa Supply Chain is Comprised of Two 2 Million Disperse Small Farms ..................... 15 19 b. Nestlé Does Not Trace its Beans, Making Any Sustainable 20 or Environmental Claims Baseless.................. 16 21 C. The Cocoa Industry Has Repeatedly Pushed Out the Date it Claims it Will Eliminate Even the 22 Worst Forms of Child Labor, Further Underscoring the Falsity of Nestlé’s Labeling............................ 16 23 V. THE REGULATORY FRAMEWORK ............................. 18 24 A. The FTC Green Guides Prohibit Nestlé’s Misleading Statements . ... 18 25 B. The California Environmental Marketing Claims Act Prohibits Nestlé’s 26 Misleading Statements ..................................... 20 27 C. Nestlé Violates the Intent of California Transparency in Supply Chain Act..................................................... 20 28 _______________________________________________________________-1- ______________ CLASS ACTION COMPLAINT Case 3:19-cv-00723-L-KSC Document 1 Filed 04/19/19 PageID.3 Page 3 of 40 1 1. Nestlé Fails to Comply with the CTSA by Greenwashing Slave Labor.............................................. 22 2 2. Equating Slave Labor to an Environmentally 3 Sustainable Practice is Abhorrent........................ 23 4 3. Nestlé Uses No Environmentally Sustainable Practices . 24 5 VI. NESTLE HAS THE ABILITY TO SOLVE THIS PROBLEM ........... 26 6 A. Don’t Put Misleading Seals or Statements on Products ............ 26 7 B. Technology Exists that Provides Greater Accountability ........... 26 8 CLASS ACTION ALLEGATIONS ..................................... 26 9 COUNT I (Unfair and Deceptive Acts and Practices In Violation of the California Consumers Legal Remedies Act ....................... 29 10 COUNT II (Violation of California’s Unfair Competition Law) .......... 30 11 PRAYER FOR RELIEF .............................................. 35 12 JURY TRIAL DEMANDED ........................................... 36 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 _______________________________________________________________-2- ______________ CLASS ACTION COMPLAINT Case 3:19-cv-00723-L-KSC Document 1 Filed 04/19/19 PageID.4 Page 4 of 40 1 Plaintiff Renee Walker (“Plaintiff”) brings this action, on behalf of herself and all 2 others similarly situated against NESTLÉ USA, INC. (“Defendant” or “Nestlé”). 3 Plaintiff alleges the following based upon information and belief, the investigation of 4 counsel, and personal knowledge as to the allegations pertaining to herself. 5 I. NATURE OF THE CASE 6 1. Nestlé, the world’s largest food company, is best known for chocolate 7 products like Butterfinger, Nestlé Crunch, Baby Ruth, Nesquik, 100 Grand and Toll 8 House chocolate chips. What Nestlé is not as well known for is that it has been making 9 its chocolate fortune off the backs of child labor and child slave labor in West Africa. 10 Nestlé has been acutely aware of the magnitude of unethical labor in its supply chain for 11 more than a decade – indeed, it admits, albeit anemically, that two-thirds of its chocolate 12 supply is tainted with child labor and/or child slave labor.1 In fact, the World Cocoa 13 Foundation, which Nestle is a member of, reports that there are approximately 10 million 14 children working on the cocoa farms in Côte d’Ivoire and Ghana.2 15 2. Notwithstanding knowing full well that its chocolate is primarily procured 16 from farms using the worst forms of child labor, Nestlé slaps bogus “seals” on its 17 products claiming its cocoa is “sustainably sourced” “certified” and “supports” or 18 “helps” farmers when it knows the opposite is true. It is abhorrent to equate slavery 19 and child labor to a “sustainable” practice. Nor does Nestlé fare any better on the 20 environmental “sustainability” front: Nestlé’s supply chain has virtually no 21 environmental standards in place. To the contrary, the “[c]hocolate industry drives 22 rainforest disaster in [the] Ivory Coast.”3 This massive deforestation was documented 23 by The Guardian, whose investigative reporters “travelled across Ivory Coast and 24 25 1https://www.nestle.com/asset-library/documents/creating-shared-value/responsible- 26 sourcing/nestle-cocoa-plan-child-labour-2017-report.pdf, at p. 11. 2 https://www.worldcocoafoundation.org/blog/tackling-child-labor-in-the-cocoa-sector-an-industry- 27 viewpoint-of-a-work-in-progress/ 3https://www.theguardian.com/environment/2017/sep/13/chocolate-industry-drives-rainforest- 28 disaster-in-ivory-coast 29 2 30 CLASS ACTION COMPLAINT 31 Case 3:19-cv-00723-L-KSC Document 1 Filed 04/19/19 PageID.5 Page 5 of 40 1 documented rainforests cleared for cocoa plantation; villages and farmers occupying 2 supposedly protected national parks; enforcement officials taking kickbacks for 3 turning a blind eye to infractions and trading middlemen who supply the big brands 4 indifferent to the provenance of beans.” Ibid. At the current pace of deforestation, 5 there will be no forest left in the Ivory Coast by 2030. Ibid. 6 3. Nestlé’s deceptive labeling misleads consumers into believing their 7 products are procured in accordance with environmentally and socially responsible 8 standards, when it knows they are not. Ms. Walker was misled by the affirmative 9 misrepresentations on Nestlé’s product packaging concerning the use of fair labor and 10 environmental standards and practices. Had she been aware of the misrepresentations 11 described herein, she would not have purchased Nestlé’s products. 12 4. Plaintiff thus brings this action pursuant to: (i) California’s Business & 13 Professions Code §§ 17200, et seq. (the Unfair Competition Law or “UCL”); and (ii) 14 California Civil Code §§ 1750, et seq. (the Consumers Legal Remedies Act or 15 “CLRA”). Plaintiff brings this action on behalf of a nationwide class for restitution 16 and injunctive relief, and any other relief deemed appropriate by the court to which 17 this case is assigned. 18 II. JURISDICTION AND VENUE 19 5. This Court has personal jurisdiction over Nestlé because Nestlé has 20 conducted and continues to conduct business in the State of California, and because 21 Nestlé has committed the acts and omissions complained of herein in the State of 22 California. 23 6. This court has subject matter jurisdiction pursuant to the Class Action 24 Fairness Act, 28 U.S.C. 1332(d), as Plaintiff (California) and Nestlé (Delaware) are 25 diverse, there are over 100 class members, and the amount in controversy exceeds $5 26 million. 27 7. Venue is proper in the Southern District of California, because a substantial 28 portion of the acts giving rise to this action occurred in this district. 29 3 30 CLASS ACTION COMPLAINT 31 Case 3:19-cv-00723-L-KSC Document 1 Filed 04/19/19 PageID.6 Page 6 of 40 1 III. PARTIES 2 8. Plaintiff Walker is, and at all times mentioned herein was, an individual 3 citizen of the State of California and resident of San Diego County. Plaintiff purchased 4 Defendant Nestlé’s chocolate products labeled with the “Nestlé Cocoa Plan” “UTZ 5 Certified” “Certified through UTZ” and “Sustainably Sourced” labels on them 6 purporting to, among other things, “Support[] farmers for better chocolate” and “help 7 improve the lives of []cocoa farmers.” Plaintiff relied upon Nestlé’s misrepresentations 8 about the social and environmental benefits of the products in making her decision to 9 purchase the products. Plaintiff suffered injury in that she would not have bought the 10 UTZ/Nestlé Cocoa Plan/Sustainability-labeled products had she known that the 11 products were not sourced from sustainable farming practices but rather off the backs 12 of child and slave labor. 13 9. Defendant Nestlé USA (“Nestlé”) is a Delaware corporation with its 14 principal place of business at 1812 North Moore Street in Rosslyn, Virginia 22209.
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